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Old 08-23-2007, 01:31 PM
mtgordon mtgordon is offline
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Join Date: Apr 2005
Posts: 723
Default Re: Derivative Premium Arbitrage

First let me state that I am by no means an expert and probably more towards the newb side of things. However, I'm wondering why people on this board don't recommend more leveraging. Isn't that a way to increase your EV? I understand that the risk goes up as well, but if there were ever people that should be able to understand/cope with that it should be professional gamblers.

We would certainly suggest raising a draw for value even though it would increase the variance. As long as the game continues long enough things will equal out and +EV decisions will yield higher returns.
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